R2001-187 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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� � + � Page 2 As noted on the table, the bid prices received are well under the Engineer's Estimate. Estimates are generally based upon past work of a similar nature that has been completed. As in the table ' above, the variations are often significant between bidders. City staff will normally estimate a ' median cost for the various items in a contract. As expected, median costs should be higher than a low bid. This estimation practice when used on comparable projects in combination with a competitive bidding environment will often produce bids lower than the estimate. The structure of this contract is such that additional manhole or sewer line replacement work can be added as needs are identified that cannot wait on or are impractical for a new contract to be prepared, advertised and awarded. In all likelihood, additional manhole and sewer problems requiring immediate attention will be identified prior to the end of the fiscal year. Staff desires to take advantage of the excellent bid received and requests the authority to expend up to an additional $25,000 under this project to address other manhole / sewer problems as they arise. If necessity dictates that the additional funds be fully expended, the final outlay will be less than the original Engineer's Estimate for the project. POTENTIAL OBJECTION: There are no known objections to this resolution and bid award. INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Matt Newell, City Engineer, at 424-2747 The City Engineer, Matt Newell, will be in attendance at the City Council meeting to answer any questions of the Council on this item. BUDGET/TIME IMPLICATIONS: Funding for this project is currently budgeted in the City's Sanitary Sewers Fund. The recommended low bid amount is $48,915.00. The resolution also authorizes an additional $25,000 which may increase the project up to $73,915.00. The project is scheduled to begin October 2001 and should be completed within 2 months. The project will be held open until the end of the fiscal year to address additional sanitary sewer problems as they are identified. attach: 2 cc: John Smith, Assistant City Manager of Public Services Dave Schmidt,Bodine Services, Inc. Chris Entler, Entler Excavating Co., Inc.